Gold Price Forecast: XAUUSD to shrug off ECB meeting.

Gold is popular with central banks as a safe haven and store of value.“We believe that the ECB will decide today to bring its bond purchases to an end at the start of the third quarter. In addition, it is likely to signal fairly clearly that interest rates will be raised at its next meeting in July and that the deposit rate will no longer be negative by the end of September. This would imply that the next rate hike will come in September.”

“We believe it is questionable whether any statement will be made about the longer-term interest rate outlook, as there is still a lack of consensus on this issue within the ECB Governing Council. The hawkish remarks expected from Lagarde are probably already priced in, for the most part, so under normal circumstances, we would not expect any major reaction from the gold price this afternoon.”

“According to a survey of nearly 60 central banks conducted by the World Gold Council (WGC), about a quarter of central banks are planning to top up their gold reserves in the next twelve months. What is more, the majority of survey respondents expect the proportion of gold in the currency reserves to increase in the next few years.”

“AUD/USD pierces 0.7100 as Wall Street sells off

The AUD/USD pair ends Thursday at fresh weekly lows, as US indexes sold-off into the close. Fears related to global overheating inflation and slowing economic growth pushed high-yielding assets lower, while the greenback soared.

AUD/USD News

EUR/USD nears 1.0600 in the ECB’s aftermath

EUR/USD has continued to fall in the American session after reaching a weekly high of 1.0773. The ECB’s hesitancy to commit to 50 basis points rate hikes amid fragmentation risks weighs on the shared currency ahead of Friday’s US inflation data.

EUR/USD News

Gold: The dollar set to win the battle

Gold trades around $1,850, marginally lower on Thursday, as the market mood turned firmly sour following the ECB decision. As widely anticipated, the central bank left rates unchanged and announced a rate hike coming in July, followed by another one in September.